LONDON, Dec 15 (Reuters) – Britain will start regulating cryptoassets from October 2027, the finance ministry said on Monday, rules it hopes will give the industry certainty while keeping out “dodgy actors”.
The new law – the government will introduce legislation into parliament later on Monday – will extend existing financial regulation to companies involved in crypto, aligning Britain with the U.S. rather than the European Union, which has built rules tailored to the industry.
A draft bill giving effect to regulation has undergone only minor changes since it was published earlier this year, a ministry spokesperson said.
Globally, interest in cryptoassets has surged since U.S. President Donald Trump came to power promising to embrace the industry, although the price of the largest cryptocurrency, bitcoin , has fallen sharply in recent months after hitting a record high.
The U.S. is pursuing what is perceived by the industry to be a more crypto-friendly approach than Britain, while the European Union’s Markets in Cryptoassets rules took effect in 2024.
Britain has said it would collaborate with the U.S. on the best approach to digital assets through a “transatlantic taskforce”.
Finance minister Rachel Reeves said the rules would provide “clear rules of the road”, strengthen consumer protections and keep “dodgy actors” out of the market.
Natalie Lewis, a partner at Travers Smith, told Reuters she hoped the changes in the final legislation would be “more than minor” as there were “quite a few technical legal problems with the original draft”.
